- 1. By:Jagjyot Singh Chadha Shaswati Sen Poulomi Sen Priya
Khurana Chaitanya Bansal
2. Introduction
- Founded by: Michael Dell (CEO) in 1984
- Revenue $57.4 billion (2007)
- Net income $2.6 billion (2007)
3. History
- Dell grew through the1980 s and1990 s to become at one stage
the largest seller of PCs and servers.
- In1992Dell first time enter into the Fortune 500 list.
- In1996 , Dell began selling computers via its web site.
- In1999 , Dell overtook Compaq, to become largest seller of
personal computers in US.
- In2006rank of Dell is 25 thin fortune 500.
- It currentlyholds the second spot in the hardware
computerindustry behind Hewlett-Packard after the latter's merger
with Compaq in 2002.
4. E E 5. Traditional Business Model
- Dell sold its product to End user customer /corporate
customers.
- Using direct sales model via Internet and Telephone
network.
6. Dell Online
- Dell online is a high success story industry analyst
- Millions of people visit the website each week and generate
millions of dollars revenue.
- Dells business modelis to let the customer configure the
product on the web and fulfill within 36 hours.
- Customers can check theorder statusand also get thetechnical
helponline.
7. DELLs VALUE WEB MODEL 8. DELLs VALUE WEB MODEL
ComponentSuppliers 9. Component supplier
- The suppliers of high-tech components, such as microprocessors
and software provided by firms such as Intel and Microsoft,
- The low-tech, low-differentiation components manufacturers who
compete on prices and availability.
10. DELLs VALUE WEB MODEL CMs/OEMS 11. Original equipment
Manufacturer(OEM)
- The OEMs traditionally would receive all the parts from their
suppliers, assemble the computers in their production lines and
ship them over to their distributors, or Corporate resellers.
- e.g. Company XYZ receive parts from Intel (processor),
Microsoft (software) then this company assemblethe computer to
Santech computer.
Supplier OEM 12. DELLs VALUE WEB MODEL Distributors 13.
Distributors
- They generally supply to corporate resellers and other
distributors.
- They carry large quantities of different products, to increase
their leverage when dealing with their customers.
- They also provide specific software, peripherals, furniture,
etc, as well as service.
- e.g. Ingram Micro, Tech Data, Computer 2000, and Santech .
14. DELLs VALUE WEB MODEL System integrators 15. Corporate
resellers/System Integrators
- The corporate resellers or systems integrators generally buy
systems directly from manufacturers and install these systems at
their corporate clients.
- These are firms whose main purpose is to provide customization
to their clients.
integrate software, hardware, and network capabilities 16.
Manufacturer Manufacturer consumer commercial 17. Particular Name
of companies Component parts Intel(microprocessors), Sony(picture
tube),Third party hardware and software supplier Microsoft
Distributors Ingram Micro, Tech Data, Computer 2000, and Santech .
Retailers Wal-Mart, Office Max, Computer City, CompUSA and
Micro-Center System integration Wang, Unisys, and IBMRepair and
Support companies Wang, Unisys, IBM and BancTec 18.
- Dells model looks surprisingly simple.
- Behind this simple model is the complex hard to imitate core
capabilities developed over 15 years.
19. Benefits to company by such distribution
- CASH:Dell maintains a negative cash conversion cycle means the
payment receive for product before it has to pay for material.
- Dells direct sales and build-to-order model has achieved
superior performance in the PC industry in terms of inventory
turnover, reduced overhead, cash conversion, and return on
investment
- Bypassing the reseller channel that causes further cost
reduction to company.
20.
- CRM:Direct customer relationship is the key to Dells business
model, and provides distinct advantages over the indirect sales
model.
- DEMAND FORECAST : Dell additional advantages over indirect PC
vendors who must try to forecast demand and ship products based on
those forecasts.
21. Benefits to customer by such distribution
- Tailored offerings from Dell in terms of add-on products and
services.
- Very customizable systems at an affordable rate, since Dell
manufacturing builds specifically for each customer.
22. Thank You